Globalization with tendency to adopt western norms needs new equilibrium by creating union of eastern and western norms. Therefore, an equal and fair international regulation reform is needed.
The message is revealed during the closing session of World Economic Forum (WEF) on East Asia entitled ‘Responding New Globalization’ in Jakarta on 27 June. The event which was participated by more then 600 CEOs, global businessmen, government officials, and scholars from various countries was closed by Thai Prime Minister Abhisit Vejjajiva.
Pascal Lamy, director general of the World Trade Organization (WTO), insisted that international community reassesses global architecture system. He underlined that current global management is referring to norms implemented 65 years ago which were truly western norms.
Lamy said: ‘Many developing nations in this planet which feel the norms do not belong to them. Therefore, new globalization norms need to reassessed. What is missing is platform of norms, which could tie all nations together.’
Lamy also mentioned that national interest becomes a problem in globalization era because added value is unequal. Exploitation of natural resources in developing nations has also caused injustice.
Therefore, Lamy urged that a more serious discussion on the ideology and philosophy to set norms which could strengthen modern global management.
Thai Prime Minister Abhisit Vejjajiva supports Lamy’s idea. He underlined that the world needs to create new globalization by implementing management reform which directs to a fairer international system. Therefore, it makes possible for all nations to acquire the benefits of globalization pressure. He said: ‘All this time we have been passive observer of globalization.’
He said: ‘Globalization is about how we actively respond an extraordinary process. Therefore, it has made us to be a passive witnesses and victims.’ To create a new globalization, an equal and fair regulation reform is needed. In addition, new globalization still have to refer to market mechanism; yet, it must be well-implemented, so that efficiency is created.’
Vejjajiva supports the idea of new norms formulation suggested by Lamy. Vejjajiva said: ’We must find a more inclusive, fair, and sustainable new growth model. We need new policy which is more inclusive based on the principle of equilibrium, equality, and sustainability.’
He also revealed that Asian countries and other countries can no longer depend on past solution such as state spending, dependency on tax, and regulation. He said,’Because we will fall into a unsustain welfare trap and irresponsible consumption by doing that’.
Dominic Barton, worldwide managing director of McKinsey & Company, is optimistic that Asian region can respond the globalization pressure. Referring to its successful rise of economy, Asia has the rights to lead the new globalization.
Infrastructure
Dominic Barton and Stuart T. Gulliver, group chief executive of HSBC Holdings, suggested Asia to focus on infrastructure development in facing globalization, because infrastructure in this region is still insufficient.
However, Asian countries would better focus on 1 or 2 successful infrastructure projects which could be a reference. Gulliver said: ‘Just choose 1 or 2 concrete infrastructure projects and then develop them well.’
Barton views the infrastructure problem is not on the funding, but more to priority. In East Asia, the need for infrastructure is crucial, especially roads, bridges, and electricity. He said: ‘To undergo infrastructure development cooperation between the government and private sector is needed.’ Gulliver added that Asia, which owns huge savings needs to utilize it for infrastructure development. Furthermore, the region needs to eliminate obstacles in financial sector by developing insurance and pension industry, as well as developing bond market.’
Gulliver mentioned that the world is experiencing 2 stages. First, industrial nations (the West) develop industry in the East to acquire cheap labor in generating cheap products then sell them to the West. Second, western consumers buy the products and that is the origin of financial crisis, especially in the United States and the United Kingdom.
Competitiveness and Environmental Problems
Meanwhile, CEO of Pertamina Karen Agustiawan who is also cochair in WEF underlined that energy architecture development is needed in Asia to cope with competitiveness and environmental problems as an attraction for investment in oil and gas sector. This effort must have the support of the government and people.
She also mentioned Asia's commitment to develop alternative energy. Unilever CEO Paul Polman stressed out about issues of lackness in fuel supply in globalization. Polman was concerned about lack of clean water, climate change issue, and food crisis. According to him, the world exploits two thirds of the natural resources which can not be renewed. If we do not change the current way to deal with this issue, the world will lose direction. He said: ’Therefore, a new business model is needed.’
Polman observed that companies no longer think about nationalism, but more to how generate cheap products with high quality through creativity and innovation.
Intellectual Property Rights
In another occasion, Lamy brought up issues regarding intellectual property rights which is less protected to a certain level. Lamy said: ’If we agree that there must be accessibility to natural resources, why do not we agree that intellectual property can also be accessed. The difference in natural resources is that we must invest for it.’
Regarding intellectual property rights, Sehat Sutardja, CEO of United States' Marvell Technology Group, believes that intellectual property is natural resources in a different form. Intellectual property rights is more valuable than natural resources. Taiwan and China has human resources which could be utilized for new innovation. The people start to realize that science is the most important resources. It could be the same or even more valuable than natural resources.
China is believed to have the awareness by investing big in universities. Taiwan also invests big in semi conductor.
He said: ‘I think that intellectual property rights is a property with a different form of natural resources. However, intellectual property rights could create a magnet for developing science.’
There were public worries regarding technology development in the middle of Indonesia's rapid economic growth. Technology advancement is considered to be too fast. Therefore, it causes challenges such as transparency, unequal distribution of wealth, and revolution. With huge natural resources and productive population, Indonesia is worried on whether it could be involved in world economy and use technology to improve economic growth.
The message is revealed during the closing session of World Economic Forum (WEF) on East Asia entitled ‘Responding New Globalization’ in Jakarta on 27 June. The event which was participated by more then 600 CEOs, global businessmen, government officials, and scholars from various countries was closed by Thai Prime Minister Abhisit Vejjajiva.
Pascal Lamy, director general of the World Trade Organization (WTO), insisted that international community reassesses global architecture system. He underlined that current global management is referring to norms implemented 65 years ago which were truly western norms.
Lamy said: ‘Many developing nations in this planet which feel the norms do not belong to them. Therefore, new globalization norms need to reassessed. What is missing is platform of norms, which could tie all nations together.’
Lamy also mentioned that national interest becomes a problem in globalization era because added value is unequal. Exploitation of natural resources in developing nations has also caused injustice.
Therefore, Lamy urged that a more serious discussion on the ideology and philosophy to set norms which could strengthen modern global management.
Thai Prime Minister Abhisit Vejjajiva supports Lamy’s idea. He underlined that the world needs to create new globalization by implementing management reform which directs to a fairer international system. Therefore, it makes possible for all nations to acquire the benefits of globalization pressure. He said: ‘All this time we have been passive observer of globalization.’
He said: ‘Globalization is about how we actively respond an extraordinary process. Therefore, it has made us to be a passive witnesses and victims.’ To create a new globalization, an equal and fair regulation reform is needed. In addition, new globalization still have to refer to market mechanism; yet, it must be well-implemented, so that efficiency is created.’
Vejjajiva supports the idea of new norms formulation suggested by Lamy. Vejjajiva said: ’We must find a more inclusive, fair, and sustainable new growth model. We need new policy which is more inclusive based on the principle of equilibrium, equality, and sustainability.’
He also revealed that Asian countries and other countries can no longer depend on past solution such as state spending, dependency on tax, and regulation. He said,’Because we will fall into a unsustain welfare trap and irresponsible consumption by doing that’.
Dominic Barton, worldwide managing director of McKinsey & Company, is optimistic that Asian region can respond the globalization pressure. Referring to its successful rise of economy, Asia has the rights to lead the new globalization.
Infrastructure
Dominic Barton and Stuart T. Gulliver, group chief executive of HSBC Holdings, suggested Asia to focus on infrastructure development in facing globalization, because infrastructure in this region is still insufficient.
However, Asian countries would better focus on 1 or 2 successful infrastructure projects which could be a reference. Gulliver said: ‘Just choose 1 or 2 concrete infrastructure projects and then develop them well.’
Barton views the infrastructure problem is not on the funding, but more to priority. In East Asia, the need for infrastructure is crucial, especially roads, bridges, and electricity. He said: ‘To undergo infrastructure development cooperation between the government and private sector is needed.’ Gulliver added that Asia, which owns huge savings needs to utilize it for infrastructure development. Furthermore, the region needs to eliminate obstacles in financial sector by developing insurance and pension industry, as well as developing bond market.’
Gulliver mentioned that the world is experiencing 2 stages. First, industrial nations (the West) develop industry in the East to acquire cheap labor in generating cheap products then sell them to the West. Second, western consumers buy the products and that is the origin of financial crisis, especially in the United States and the United Kingdom.
Competitiveness and Environmental Problems
Meanwhile, CEO of Pertamina Karen Agustiawan who is also cochair in WEF underlined that energy architecture development is needed in Asia to cope with competitiveness and environmental problems as an attraction for investment in oil and gas sector. This effort must have the support of the government and people.
She also mentioned Asia's commitment to develop alternative energy. Unilever CEO Paul Polman stressed out about issues of lackness in fuel supply in globalization. Polman was concerned about lack of clean water, climate change issue, and food crisis. According to him, the world exploits two thirds of the natural resources which can not be renewed. If we do not change the current way to deal with this issue, the world will lose direction. He said: ’Therefore, a new business model is needed.’
Polman observed that companies no longer think about nationalism, but more to how generate cheap products with high quality through creativity and innovation.
Intellectual Property Rights
In another occasion, Lamy brought up issues regarding intellectual property rights which is less protected to a certain level. Lamy said: ’If we agree that there must be accessibility to natural resources, why do not we agree that intellectual property can also be accessed. The difference in natural resources is that we must invest for it.’
Regarding intellectual property rights, Sehat Sutardja, CEO of United States' Marvell Technology Group, believes that intellectual property is natural resources in a different form. Intellectual property rights is more valuable than natural resources. Taiwan and China has human resources which could be utilized for new innovation. The people start to realize that science is the most important resources. It could be the same or even more valuable than natural resources.
China is believed to have the awareness by investing big in universities. Taiwan also invests big in semi conductor.
He said: ‘I think that intellectual property rights is a property with a different form of natural resources. However, intellectual property rights could create a magnet for developing science.’
There were public worries regarding technology development in the middle of Indonesia's rapid economic growth. Technology advancement is considered to be too fast. Therefore, it causes challenges such as transparency, unequal distribution of wealth, and revolution. With huge natural resources and productive population, Indonesia is worried on whether it could be involved in world economy and use technology to improve economic growth.
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